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Rightmove: Lockdown property boom sees record number of moves in 2021

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The first half of 2021 has been the busiest year on record for the housing market, it has been revealed.

The frenzied market activity has helped to push up the average asking price of a newly-listed property to a new record for the fourth consecutive month, according to Rightmove.

The average asking price has climbed £21,389 higher in just six months to £338,447, according to the property listing website’s index.

Rightmove’s Tim Bannister said: ‘We predict that the number of completed sales will be the highest ever seen in a single month when June’s data is released by HMRC.

‘This means it’s likely that the first half of 2021 has seen a record number of moves when compared with the first six months of any other year, induced by the pandemic’s side-effect of a new focus on what a home needs to provide.’

Frenzied activity has helped to push up average property asking prices, says Rightmove

Frenzied activity has helped to push up average property asking prices, says Rightmove

He added: ‘That is one of the driving forces behind four consecutive months of new record average property prices.

Rightmove said that in the month to mid-July, asking prices rose 0.7 per cent – the equivalent of £2,374 and the largest monthly rise at this time of year since July 2007, at the peak of the boom just before the financial crisis.

The price data is based on Rightmove’s asking prices, while the data on the number of sales is a prediction of what the next HMRC transactions will show, based on Rightmove data that looks at properties being marked ‘under offer’ or ‘sold subject to contract’.

Rightmove attributed the increase to a lack of supply of homes for sale and identified a shortfall of 225,000 homes for sale which, if available, would have helped to maintain a more normal level of property stock for sale and stabilise prices.

This stark shortfall, along with frenzied buyer activity, is fuelling record high prices and leading to record lows in available stock for sale.  

The high levels of activity have continued, according to Rightmove, despite the end of the stamp duty holiday.

The stamp duty holiday, which ended on 30 June, saw no tax on the first £500,000 of a property purchase price replaced by none on the first £250,000 until the end of September. Stamp duty is due to return in full after that.

Rightmove said that the average value of a home in Britain currently stands at £338,447

Rightmove said that the average value of a home in Britain currently stands at £338,447

Rightmove said there is an ‘urgent need’ for low stocks of property for sale to be rebuilt so that stability in prices can return.

It comes ahead of HMRC’s latest transactions data, which is due to be published within days.

‘Demand has also been boosted by the ongoing creation of new households, and property being seen as an asset to hold, with historically low returns from many other forms of investment.

‘New stamp duty deadlines in England and Wales for sales completed by the end of June have also helped to exhaust the stock of property for sale and concentrate activity.

‘This has left prospective purchasers with the lowest choice of homes for sale that we’ve ever recorded, continuing price rises, and stretched affordability.’

Rightmove predicts that the number of completed sales will be the highest ever seen in a single month

Rightmove predicts that the number of completed sales will be the highest ever seen in a single month

The average house price has risen by 0.7 per cent on a month earlier, the equivalent of £2,374

The average house price has risen by 0.7 per cent on a month earlier, the equivalent of £2,374

Rightmove expects that the number of sales completed in the first six months of the year and due to be reported by HMRC later this week is on course to be around 800,000, which could just beat the previous record of 795,000 set in 2007.

The 2007 record was set under very different circumstances, at a time when mortgage lending criteria were much less stringent than in today’s more controlled market.

Analysis shows that the shortfall of 225,000 homes for sale comes from 140,000 more sales being agreed and 85,000 fewer new listings than the long-term – between 2014 and 2019 – average for the first half of a year.

The net result of this major imbalance between supply and demand is that the average number of available properties for sale per estate agency branch is at a new record low of 16 properties. It compares with the previous low before 2021 of 25 properties and a longer-term average for this time of year of 31.

This is based on Rightmove data for the number of available properties on average per agent on the site. 

Still in positive territory: Rightmove has revealed the monthly change in average asking prices

Still in positive territory: Rightmove has revealed the monthly change in average asking prices

The boom in sales demand and consequent greatest ever imbalance with supply have been most notable in the more expensive sectors of the market.

Rightmove said that detached homes with at least four bedrooms have seen a surge of 39 per cent in the number of sales being agreed, and a drop of 15 per cent in the number coming to market when compared to the first six months of 2019. 

This massive swing has seen average prices for this sector up by 6.7 per cent in the last six months.

Rightmove’s ‘second-stepper’ category – mainly made up of three bedroom homes – have also seen a marked swing, with 29 per cent more sales agreed and a fall in new listing numbers of 10 per cent. Heady price rises averaging 6.9 per cent in the first half of the year are the result.

Meanwhile, hard-pressed first-time buyers will find that their typical sector of two bedrooms and fewer has virtually the same supply as in 2019, down just 1 per cent. Their sales agreed numbers are also less buoyant, though still 26 per cent up on the same period in 2019.

The stock shortage is therefore less acute, and with prices up by a more modest 3.4 per cent, this could be a relative buying opportunity for those looking to get onto the property ladder, Rightmove suggested.

The average amount of time that it takes to secure a buyer has dropped since the start of the year

The average amount of time that it takes to secure a buyer has dropped since the start of the year

Mr Bannister said: ‘First-time buyers are currently benefitting from their sector having the most buyer-friendly conditions. Choice is still more limited when compared to the same period in 2019, but price rises are the most subdued of any sector.

‘Saving a deposit is still very hard, but 5 per cent is now an option, and with many paying rising rents, buying your own home on a lower deposit is becoming an opportunity again. The opportunity is also there for property owners to come to market, as it’s still a great sellers’ market despite the recent end of the tax holiday in Wales and its scaling back in England.

‘We’ve also seen a much more efficient housing market over the past year, with the strong buyer demand and faster churn of homes leading to a much higher percentage of sellers finding a buyer for their home, and fewer unsold homes being withdrawn from the market.

‘Buyer sentiment remains strong, and the growth in new households combined with people living longer and having changed housing needs is exacerbating long-term housing stock shortages.’

Estate agents confirmed the high levels of activity in the market and a lack of properties for sale.

Rob Sabin, of estate agents Miles & Barr, said: ‘East Kent’s property market continues to be very active during the first six months of 2021 with buyers continuing to purchase the limited housing stock available.

‘The number of sellers coming to market has slowed as the year has progressed, which means we’ve seen the level of new listings coming to the market significantly decrease year on year, while in turn total available stock levels across the market is at the lowest we have seen in a number of years.

‘While the number of new listings has dropped, our results remained strong with 945 homes listed accepting an offer. East Kent has also seen the number of buyers looking to relocate to either the countryside or by the coast increase with a fifth of applicants registered coming from Greater London.’

Marc von Grundherr, of estate agents Benham and Reeves, said: ‘The UK property market continues to defy expectation, with house prices reaching yet another record high despite whispers of a decline in values as a result of the tapered stamp duty holiday deadline.

‘There’s no doubt the stamp duty holiday has been the catalyst for this impressive market performance. However, it isn’t the driving factor behind the intent to purchase for UK homebuyers and so a robust level of activity will remain long after it has expired. 

‘When you couple heightened demand with a severe shortage of stock, it’s very likely that property values will remain buoyant for the remainder of the year 2021 buyer frenzy reveals 225,000 shortfall in number of homes for sale.

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Fraser to attend Oireachtas committee on Zappone controversy

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The State’s highest ranking civil servant will appear before an Oireachtas committee to explain the circumstances around the now-scrapped appointment of Katherine Zappone as special envoy.

The secretary general of the Department of Taoiseach Martin Fraser will appear before the Oireachtas Committee on Foreign Affairs next week.

Members of the committee are expected to ask Mr Fraser to explain in detail when precisely Ms Zappone’s name was communicated to the Department of the Taoiseach.

Controversy erupted in late July over an attempt by Minister of Foreign Affairs Simon Coveney to appoint Ms Zappone as a special envoy for freedom of expression and LGBTQ+ rights.

On Monday, former minister Zappone turned down an invitation to appear before the committee to discuss the matter.

Taoiseach Micheál Martin was not aware of plans to appoint her before they came before Cabinet just before the summer recess.

Moreover, Fianna Fáil has disputed a claim from Tánaiste Leo Varadkar’s that Ms Zappone was named as a UN special envoy in a memo sent to the Taoiseach’s office the day before the Cabinet discussed the proposed appointment.

“The memo with the name of Katherine Zappone was in the Taoiseach’s office, the day before the Cabinet meeting,” Mr Varadkar said earlier this month.

“Notwithstanding that, Simon Coveney and I had a responsibility to flag that to him as a Minister, me as a leader in Government, there should be good faith and no surprises, and I’ve spoken the Taoiseach about that, and apologised.”

Minister for Public Expenditure Michael McGrath disputed this and said that an “under the arm memo” sent to the office of the Taoiseach the day before the Cabinet meeting on July 27th did not mention Ms Zappone.

Mr Fraser’s decision to appear before the committee means the controversy will continue into another week.

Mr Fraser, who has been secretary general at the Department of the Taoiseach for a decade, is to move from Government Buildings late next year to become the Irish ambassador in London.

In mid-September, the Dáil voted confidence in Mr Coveney by 92 votes to 59.

Separately, Mr Varadkar has now sought to downplay reports of a “sting” operation arising from the Zappone affair, whereby a junior minister reportedly gave false information to a senior minister during a phone call, which then made its way to a journalist.

The Tánaiste said he had spoken with Patrick O’Donovan, reportedly the junior minister involved, but said he had not been shown text messages arising from the “sting” and that “there have been no confrontations” about it.

“He’s shown me no text messages or anything like that. This is an internal matter that will be dealt with within Fine Gael,” Mr Varadkar said. “I’m aware of what’s been reported and I’ve spoken to all the Fine Gael cabinet Ministers about this.”

Asked whether Ms Zappone should attend or otherwise respond to written questions from the Oireachtas committee, Mr Varadkar said it was a matter for her and the committee, arguing the Government had “moved on”.

Speaking in New York on Monday, the Taoiseach also sought to draw a line under the controversy, saying Ms Zappone was a “private citizen”. Mr Martin said: “As far as I’m concerned we’ve had enough debate about it now.”

“This was in effect, an under the arm memo which means it is brought to Cabinet on the morning of the Cabinet meeting itself and that was the first time that the name Katherine Zappone was with the Taoiseach and with all of the other Cabinet colleagues so that is certainly the case.”

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How much it costs to buy near new Nine Elms and Battersea tube stations

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Two new Underground stations opened this week – Nine Elms and Battersea Power Station.

But while the areas feature lots of new housing for London, people looking to move to there and jump on the Tube’s extended Northern Line will pay a hefty price tag.

The average price of a house in Nine Elms is £726,131, according to Zoopla, but they have got cheaper. This is a drop of more than 6 per cent on a year ago, the equivalent of £50,000. 

But that average price doubles to £1,501,091 once you narrow a buyer’s search area from the wider Nine Elms area to just the Nine Elms development site, which is the new housing just south of the River Thames. 

And there’s the opportunity to spend much more – among the three homes we found below in the location was a flat in Battersea Power Station for £16million.

A luxury penthouse high up on the eleventh and twelfth floors of Battersea Power Station is for sale for £16million with estate agent Copperstones - see more details below

A luxury penthouse high up on the eleventh and twelfth floors of Battersea Power Station is for sale for £16million with estate agent Copperstones – see more details below

Two new Underground stations have opened this week: One at Nine Elms and the other at Battersea Power Station

Two new Underground stations have opened this week: One at Nine Elms and the other at Battersea Power Station

Buyers looking at the Nine Elms development will need a typical budget of £1.5m, according to property website Zoopla

Buyers looking at the Nine Elms development will need a typical budget of £1.5m, according to property website Zoopla

Billions of pounds of investment have been pumped into the area in recent years, including through the redevelopment of Battersea Power Station.

The decommissioned coal-fired power station is now luxury flats and penthouses – while there has also been the building of a new US Embassy in Nine Elms.

Despite the recent falls in average house prices near the stations, property experts suggest that values will rise, at least in the surrounding areas.

Billions of pounds of investment have been pumped into the Nine Elms area in recent years, including through the redevelopment of Battersea Power Station

Billions of pounds of investment have been pumped into the Nine Elms area in recent years, including through the redevelopment of Battersea Power Station

Buying agent Henry Pryor said: ‘While some might expect the new stations to be full of people fleeing the Nightmare on Nine Elms Street, these new infrastructure nodes are really going to give the area a genuine lift.

‘Lower Chelsea and the area around Battersea Park may well see prices bumped up by as much as 10 per cent, even if many buyers in SW11 thought that they were high enough.’

We take a look at three properties for sale at Battersea Power Station and Nine Elms 

1. Two-bed flat, Battersea Power Station, £1.15m

This luxury flat is close to the Battersea Power Station Underground station, which opened this week in London

This luxury flat is close to the Battersea Power Station Underground station, which opened this week in London

The modern property is on the market for £1.15million and is being sold via estate agents Martin & Co

The modern property is on the market for £1.15million and is being sold via estate agents Martin & Co

Inside, there is an open-plan living area with a fully-fitted kitchen, while outside there is a covered and tiled private balcony

Inside, there is an open-plan living area with a fully-fitted kitchen, while outside there is a covered and tiled private balcony

There are two bedrooms, including the main one boasting an en-suite shower room and room for a baby's cot

There are two bedrooms, including the main one boasting an en-suite shower room and room for a baby’s cot

There is also a smaller balcony at the rear of the flat that overlooks the railway tracks that carries commuters in and out of central London

There is also a smaller balcony at the rear of the flat that overlooks the railway tracks that carries commuters in and out of central London

This luxury two-bedroom flat is in the redeveloped Battersea Power Station and has an asking price of £1.15m.

It has an open-plan living area with a fully-fitted kitchen and a large private balcony.

Residents have access to a library, private cinema, communal gardens, a gym, swimming pool and a concierge service. The flat is being sold via estate agents Martin & Co.

2. Six-bed penthouse, Battersea Power Station, £16m

The modern interiors include designer crittall-style doors and walls, which are made from many panes of glass

The modern interiors include designer crittall-style doors and walls, which are made from many panes of glass

The property has six bedrooms, seven bathrooms - including this one with a cooper bath -, a roof terrace and two parking spaces

The property has six bedrooms, seven bathrooms – including this one with a cooper bath -, a roof terrace and two parking spaces

The penthouse boasts far-reaching views from the private balcony across the River Thames and towards the city

The penthouse boasts far-reaching views from the private balcony across the River Thames and towards the city

The London penthouse has a hefty price tag and is being sold via estate agents Copperstones for £16million

The London penthouse has a hefty price tag and is being sold via estate agents Copperstones for £16million

This luxury penthouse is on the eleventh and twelfth floors of Battersea Power Station, with views across the River Thames and the capital.

It has six bedrooms, seven bathrooms, a roof terrace and two parking spaces.

You’ll need deep pockets to buy it due to its £16million price tag. It is being sold by estate agents Copperstones.

3. Three-bedroom flat, Nine Elms, £3.95m

The three-bedroom flat is in the Ambassador Building in Nine Elms and has a light interior with walnut parquet flooring

The three-bedroom flat is in the Ambassador Building in Nine Elms and has a light interior with walnut parquet flooring

The luxury home has floor to ceiling windows and is being sold via estate agents Johns & Co with an asking price of £3.95m

The luxury home has floor to ceiling windows and is being sold via estate agents Johns & Co with an asking price of £3.95m 

The famous Sky Pool floats 10 storeys up between two skyscrapers at the Embassy Gardens development in London

The famous Sky Pool floats 10 storeys up between two skyscrapers at the Embassy Gardens development in London

This flat is in the Ambassador Building in Nine Elms at the Embassy Gardens development – home to the Sky Pool.

It is three bedrooms, walnut parquet flooring, marble work surfaces and floor to ceiling windows.

It has an asking price of £3.95m and is being sold via estate agents Johns & Co.

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What to expect in Budget 2022? Small tax cuts and modest welfare increases

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Public spending may have rocketed over the past 20 months due to the impact of the Covid-19 pandemic but it appears that tax cuts and welfare increases will be on the table nonetheless when the Government sets out its budget on October 12th.

As Tánaiste Leo Varadkar recently said, there will be tax measures aimed at “middle-income people in particular”, as well as a welfare package to offset the impact of the rising cost of living.

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